The team at The context at his Startnext campaign shown and the funding target was reached before the end of the term. Bernhard Scholz, co-founder of Der Kontext, reports in an interview with Linette Heimrich, crowdfunding expert at the Chamber of Industry and Commerce of Munich and Upper Bavaria, explains how he and his co-founders managed to get the crowd on their side and what support they received from the Chamber of Industry and Commerce. Interview by Thomas Eder.
1. Linette, you are a crowdfunding expert at the Chamber of Industry and Commerce of Munich and Upper Bavaria. What position do you currently hold at the Chamber of Industry and Commerce for Munich and Upper Bavaria, and what responsibilities do you perform?
Linette Heimrich: As a crowdfunding and crowdsourcing consultant, I primarily support startups and new business founders in deciding whether crowdfunding is a viable option for their business venture, and I offer tips on what they should consider when planning a crowdfunding campaign. In addition to consulting, I blog about crowdsourcing on the MUCrowd blog and organize events such as the Chamber of Commerce and Industry Crowdfunding Night. The next one will take place on February 16th and is dedicated to crowdfunding for food entrepreneurs.
2. In your opinion, what distinguishes a company presentation on a crowdfunding platform from a traditional startup pitch? What should one pay attention to?
Linette Heimrich: Here, you should consider what motivates the crowd to support your project. Studies have found that in reward-based crowdfunding—that is, crowdfunding with material and non-material rewards—it is primarily hedonistic and altruistic motives that motivate people to donate money. So, I either have an innovative product that generates enthusiasm or a company that, for example, solves a social problem. Ideally, even both. It is important that your own appearance harmonizes and is consistent with the project and, of course, speaks the language of the "crowd." The campaign video is a good way to bring the personal element into play. Putting your own face behind the project is important for gaining trust.
How a startup should present itself naturally also depends on the crowdfunding model it chooses. With crowd investing, for example, crowd investors have a much greater need for information, as they are investing larger sums in the company over the long term. A well-developed business plan with a market overview and financial information is needed to convince the crowd of the business model. Here, too, it's ultimately about building and maintaining trust.
The basic rule for all crowdfunders is: Present yourself and your project authentically and honestly. What matters is your vision, your story, and your passion to make it a reality. In this respect, presenting to a crowd isn't all that different from a startup pitch to traditional investors. Here, too, the "human factor" is often one of the decisive criteria.
3. Bernhard, your campaign is currently running on Startnext.com. It's important to present your startup to users efficiently and simply within the shortest possible time. With that in mind, how would you describe your startup in just five words?
Bernhard Scholz: Interactive background magazine for current topics.
4. Did you find it difficult to optimally present your company on the crowdfunding platform? How did you go about it?
Bernhard Scholz: It does take some brainpower. We continually simplified everything, asking ourselves how we could further reduce the most important statements. We wanted to be left with only the absolute essence of what we wanted to achieve with the project. This starts with choosing the platform, the message of our video, writing and rewriting the texts, considering how we want to present ourselves to the public, and of course, is also reflected in the thank you notes. We spent a long time fine-tuning every detail and hope that we've distilled the most important elements in each case.
5. Linette, how do you know Bernhard Scholz from “Der Kontext” and how did the initial contact and the consultation go?
Linette Heimrich: When Bernhard came to me for advice, "Der Kontext" was still in its early stages. That was over a year ago. At that time, there were already several successful crowdfunding projects in the journalism sector, such as Substanz magazine, "Eine neue Version ist verfügbar" (A new version is available) by Dirk von Gehlen, and Krautreporter. All of them offered new journalistic approaches that sought to provide a counterpoint to existing offerings. With "Der Kontext," Bernhard and his team pursued a completely new approach to journalistically preparing complex topics and structuring them based on content connections. Crowdfunding thrives on novelty. Truly successful crowdfunding projects solve existing problems or challenges facing our society. "Der Kontext" had the potential to do just that.
6. Bernhard, why did you decide on a crowdfunding campaign and what role did the Chamber of Industry and Commerce for Munich and Upper Bavaria play in this?
Bernhard Scholz: Crowdfunding on Startnext is our market entry with the magazine "Der Kontext." We've intensively developed the magazine and found a highly innovative way to convey complex topics. Now we're ready to produce the first content, and to do that, we need the crowdfunding funding. We first had a startup consultation with Linette at the Chamber of Commerce and Industry – we were still complete greenhorns back then. She quickly brought up the topic of crowdfunding, as it was a great fit for "Der Kontext." We then stayed in regular contact with her, sought her opinion, and attended a few Crowdfunding Nights. Of course, we spoke with other crowdfunders, and ultimately, we even discussed the campaign itself with Linette before it went online.
7. How did you feel about the consultation?
Bernhard Scholz: Linette is very positive, full of ideas, and she helps with contacts, advice, and support. She's happy to share her experience and expertise, and we always felt we were receiving excellent advice. Furthermore, her tremendous commitment to crowdfunding is truly unique.
8. Linette, what are the most essential points that are discussed and talked about during such a consultation?
Linette Heimrich: Key questions are: Is crowdfunding actually right for the founder? If so, which model fits the company's situation? Are they looking for growth financing or is it about launching a product? How do you plan a crowdfunding campaign, and what effort do you need to calculate? Which contacts and networks can I tap into? These are common points in a consultation. But it also always depends on the individual founder. The better prepared someone is when they come to the consultation, the more detail you can go into.
9. And what were the most essential points you took away from the conversation, Bernhard?
Have a plan, have a crowd, think everything through three times!
10. What is the fascination of “crowdfunding” for you and what do you see as the main opportunities compared to other financing options?
Linette Heimrich: The internet makes something possible that not so long ago seemed unthinkable or incredibly complex: the active involvement of people or customers in the startup process. And I deliberately say process, because founders shouldn't just see crowdfunding as a financing option. It's much more exciting to get potential customers excited about your project early on and get them on board, for example, by actively involving them in the development of the product or business idea. If you master this well, you can build a loyal community early on that supports the product and spreads it into the world. Anyone who sees the crowd exclusively as a financier has fundamentally misunderstood the principle. The crowd wants to be part of something and contribute. As a founder, you should give them the opportunity to do this; then a win-win situation arises that goes beyond the financial aspect.
Bernhard Scholz: Crowdfunding is much more than just a way to finance projects. It's a true market test with committed, genuinely interested, and great people – the "first movers." With them, you can significantly improve a product because they pay close attention and provide valuable feedback. The campaigns that raise the most money are almost always run by experienced crowdfunders who already know how to involve their fans.
Additionally, the entire crowdfunding process, especially from the very beginning, is very intense, exciting, and thrilling. We're really enjoying it!
11. How do you think crowdfunding will evolve within the startup scene in the coming years, Linette? Are there any current trends?
Linette Heimrich: Crowdfunding will establish itself as a building block for startup financing. That doesn't mean that every founder will necessarily use crowdfunding. But it will become more commonplace in the startup process. For crowdfunding itself, I see the potential to encompass many more areas of life than before. At some point, it will also be normal for large companies or public institutions to involve the crowd with their skills and ideas in one way or another.
12. Your campaign was successful. What are your next business goals that you want to achieve with the capital raised?
Bernhard Scholz: Now things are moving quickly – the editorial team for the magazine is being set up, and we're quickly producing the first topics. We hope to use these topics to attract more readers to "Der Kontext."
13. Finally, what tips do you have for other startups planning a crowdfunding campaign? What should they definitely be aware of beforehand?
Linette Heimrich: Two essential things: 1. Don't underestimate the effort involved in a crowdfunding campaign. Crowdfunding isn't a quick way to make money; it's a full-time job. It requires planning, flexibility, and commitment.
2. Take the crowd seriously. If you lose trust, you're at a disadvantage. Communication is therefore the key to a successful crowdfunding campaign.
Bernhard Scholz: The same ones Linette gave us – have a plan, have a crowd, think everything through three times! And I'd add a quote from Muhammad Ali; or rather, the original is from some general: Everyone has a plan until they get punched in the face – so have a plan B too.
Tip:
For anyone who would like to learn more about crowdfunding: On 16 February the 5th IHK Crowdfunding Night will take place on the topic “Food & Crowdfunding” instead of.
… and for all those who would like to be trained as a crowdfunding manager: The specialist seminar “Crowdfunding Manager/in IHK” will be offered again in 2016 – more information about the program and registration can be found on the website of the Chamber of Commerce and Industry Academy.
